House of Fraser apologises after cancelling all online orders

Jermaine Castillo
August 20, 2018

However, businessman Philip Day, who also wanted to buy House of Fraser, has said Mr Ashley should pay suppliers - who are said to be owed £70m - "in full".

XPO Logistics - who deal with shipping for the company - have ceased processing orders for HoF, citing payment disputes as their reasoning.

XPO could now be owed tens of millions of pounds, but under the pre-pack administration deal in which House of Fraser was acquired, the purchases are able to discard existing pension liabilities and creditor claims.

In this latest development, the company has informed customers that it has cancelled online orders due to significant delays.

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The Guardian newspapers reported a source close to Sports Direct as saying the group had been forced to cancel orders as XPO was being "totally unreasonable in terms of their demands" and was "refusing to engage in any process" which would "move the situation forward".

Issuing a statement over the decision to cancel and refund all orders, House of Fraser said on Facebook: "We didn't take this decision lightly, but since we can not give our customers clear assurances of when their orders will be delivered, we believe cancellation is the best option".

"All customers affected will receive an email about the cancellation and refund in the next couple of days. Please accept our apologies for any inconvenience caused", they said on their Twitter.

The department store chain was bought out of administration by Mike Ashley's Sports Direct last week, but the retail tycoon is not paying suppliers money owed before his rescue. Ordered a £90 purse last Thursday. "Get my money back ASAP".

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House of Fraser will be refunding any orders made online that have yet to be delivered, and will be sending out emails to confirm this in the next few days.

Other House of Fraser clothing suppliers have taken action as they negotiate over payments.

A message posted on the retailer's website said: We're working hard to makes some improvements to the website.

Sports Direct chief executive Ashley said at the time: "We will do our best to keep as many stores open as possible".

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